Treasury yields move lower on data showing a strong American consumer

The yield on the benchmark 10-year Treasury note fell 1.5% to about 2.5493%, while the yield on the 30-year Treasury bond fell 0.9% to 2.9646%. Bond yields move inversely to prices.

U.S. retail sales surged in March at the fastest pace since late 2017, the Commerce Department said. Economists polled by Refinitiv expected a gain of 0.9%. The jump in sales was driven by more spending on autos, gasoline, furniture, and clothing.

“A bounce in consumption is consistent with the pendulum of economic sentiment swinging back from the extreme negatives seen last month,” said Ian Lyngen, head of U.S. rates at BMO, in a note. “It also implies the Fed’s explicit bet on the return of the consumer in Q2 might yet pay off.”

Investors will be watching Atlanta Fed President Raphael Bostic’s speech at 12 p.m. ET.

There will be a 4-week bill auction and a 5-year TIPS (Treasury inflation-protected securities) sale.